The Requirement by SFAS No

question 16

Multiple Choice

The requirement by SFAS No. 2 that research and development costs be immediately expensed is an example of:

• A)elastic uniformity.
• B)finite uniformity.
• C)flexible uniformity.
• D)rigid uniformity.

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Definitions:

Measuring

The action or process of quantifying or valuing an entity, activity, or financial transaction using specific units or standards.

Property Plant and Equipment

Long-term tangible assets held for use in the production or supply of goods or services, or for rental to others.

Consolidation

The act of merging various elements, especially financial accounts from different entities, into a comprehensive aggregate for reporting purposes.

Cum-dividend Basis

A way of pricing shares where the buyer is entitled to receive a declared dividend, as the purchase is made before the ex-dividend date.